Olectra Greentech Limited Chairman and MD KV Pradeep resigned

New Delhi: Olectra Greentech Ltd on Monday said its chairman and managing director (MD) KV Pradeep has resigned due to personal reasons. “The effective date of his resignation will be announced in due course,” the company said in a stock exchange filing.

Olectra Greentech has been in trouble after a series of cancellations of large orders from state governments in recent days, leading to huge losses for the company. The Maharashtra government cancelled a contract for 5,150 buses that was given to the company in late May.

In a post on social media platform X, Maharashtra Transport Minister Pratap Sarnaik said the company has failed to deliver even one of the 1,000 buses that were to be delivered by May 22. The inaction by the supplier has led to authorities being directed to cancel the tender for 5,150 buses.

The cancellation of the contract is believed to have resulted in a loss of over Rs 9,000 crore for the company. With the cancellation of the contract by the Maharashtra government, Olectra Greentech’s order book has come down from 10,000 buses to about 5,000.

Apart from this, the company has suffered a loss of about Rs 70 crore due to the shortening of the contract of 50 intercity buses given by the Telangana government. According to the information, this contract was given to the company on March 6, 2023 and it was to be completed by July 2024. But, only 10 buses could be delivered under this order, due to which the state government decided to reduce the number of buses in the order.

Olectra Greentech’s stock closed at 1,224.60 on the National Stock Exchange (NSE) with a gain of 0.22 percent. Currently, the stock is about 37.5 percent below its 52-week high of Rs 1,960.